Borrowing from the Real Estate Fund and building before one's name is released: Is it permissible to take the loan?
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Fatwa No. ( 21001 )
Q: I applied to the Real Estate Fund for a construction loan in 1409 AH. Since the release of my name was delayed, I requested the Real Estate Fund to allow me to start building my residence, and they permitted it. I completed the construction, praise be to Allah. One year after I finished building and moved into the house, my name appeared in the Real Estate Development Fund. They sent me a letter stating their approval of the loan, and requesting my presence to sign the contract and receive the first installment. I informed them that I had already finished, praise be to Allah, and they said that the regulations allow for this.
My question to you, O honorable scholars: Is it permissible for me to take this loan and return it to the fund in order to benefit from the waiver, which is ninety thousand riyals (90,000) for those who repay the loan in a lump sum? I hope you will kindly issue a ruling for me on this matter, as this situation occurs for some applicants to the Real Estate Fund?
A: If the situation is as described, there is no blame on you in taking the aforementioned loan; because it is your right according to the state's regulations, even if you had already finished the construction, especially if the bank was aware of your work and had given you permission to do so. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q: I applied to the Real Estate Fund for a construction loan in 1409 AH. Since the release of my name was delayed, I requested the Real Estate Fund to allow me to start building my residence, and they permitted it. I completed the construction, praise be to Allah. One year after I finished building and moved into the house, my name appeared in the Real Estate Development Fund. They sent me a letter stating their approval of the loan, and requesting my presence to sign the contract and receive the first installment. I informed them that I had already finished, praise be to Allah, and they said that the regulations allow for this.
My question to you, O honorable scholars: Is it permissible for me to take this loan and return it to the fund in order to benefit from the waiver, which is ninety thousand riyals (90,000) for those who repay the loan in a lump sum? I hope you will kindly issue a ruling for me on this matter, as this situation occurs for some applicants to the Real Estate Fund?
A: If the situation is as described, there is no blame on you in taking the aforementioned loan; because it is your right according to the state's regulations, even if you had already finished the construction, especially if the bank was aware of your work and had given you permission to do so. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.